RE/MAX report finds Canadian cottage owners choosing to hold on to properties, despite interest rates and affordability concerns

By Pepper Parr

April 30^th, 2024

BURLINGTON, ON

RE/MAX Canada’s 2024 Cottage Trends Report examines market activity in 22  recreational markets nationwide and finds an anticipated 6.8 per rise in recreational property prices for 2024, paired with an increase in sales in 61.9 per cent of markets.

Re/MAX reports that rather than selling-off recreational properties in droves to overcome affordability challenges, Canadians in most recreational markets appear to be holding on to their properties – a trend that’s likely influenced by the desirable quality of life along with the prospect of future returns provided by recreational property ownership.

Their report analyzes the potential impact the recent change in the capital gains tax could have on recreational owners across the country before the June 25 deadline.

Key insights from the report include:

1. 64 per cent of Canadian cottage owners have decided not to sell this year.
2. In 61.9 per cent of regions analyzed the number of sales is expected to rise between three per cent and upwards of 50 per cent this year.
3. 55 per cent of Gen Zs and 57 per cent of Millennials spend more time at their secondary properties than they did before the pandemic due to the added quality of life found in recreational markets, according to a Leger survey commissioned as part of the report,

Christopher Alexander, President, RE/MAX Canada

Christopher Alexander, President, RE/MAX Canada said: “Years of research* have shown that Canadians consistently see value in real estate ownership – both as a necessity and an investment. Those who have already gained a foothold in the recreational property market are determined to hold on to this asset, despite mounting affordability concerns across the country.”

“Even the change to the capital gains tax, that will take effect on June 25, won’t spark a wide-spread flood of new listings and sales by cottage owners trying to get in under the wire given the narrow window,” adds Alexander. “That said, RE/MAX brokers and agents in some regions have reported a recent uptick in listings that may be tied to the new change, it could also prompt some Canadians to have estate planning discussions earlier, so work with an experienced, local real estate agent, who can advise you of current conditions in your given market.”

Recreational property prices expected to rise by 6.8 per cent in 2024

• 64 per cent of Canadian cottage owners have decided not to sell this year.
• When it comes to a recreational property purchase, half of Canadians prioritize affordability (46 per cent, up from 43 per cent in 2023), followed by proximity to water (35 per cent), and necessary amenities (27 per cent).